Overview
Since July 2022 the state of Colorado started applying a Retail Delivery Fee for some transactions.
Starting on July 1st 2024 the state of Minnesota is also imposing a Retail Delivery Fee.
Please check the previous links and updated information on the Avalara Knowledge Center or with your Avalara account manager.
In order to support this, the Avatax for BusinessOne solution is adjusting the configuration to support multiple states. The behavior and calculation logic will remain the same: the approach is to add a non-inventory item in the transaction, with a specific OF400000 taxcode.
Avatax identifies this tax code and will calculate the fee if applies using that item.
Calculating Retail Delivery Fee in SAP BussinesOne
The fee is calculated by the Avatax engine. Avatax for SAP B1 sends the transaction information to Avaltax and then handles the response.
In order to have the Retail Delivery Fee calculated, you need to include a new line item in the sales document, with the provided Avatax TaxCode (OF400000), and a valid Ship-To address set for this line. If the fee applies, Avatax will calculate and return the expected fee as the calculated tax for this line.
Define a new item in your Item Master Data, like this, and set the indicated Avatax Tax Code.
Then you can include the item on the sales document, and get the tax calculated including the fee, like in this example with a ship-to Colorado.
Features to calculate Retail Delivery Fee in SAP BusinessOne
With the previous steps you can get the Retail Delivery Fee included and calculated in the document, but you still need to manually add the Colorado Fee line item manually in the document.
To enhance this and provide automatization capabilities you can use the following features, configurable from the add-on settings:
There are 4 (four) Retail Delivery Fee Modes available:
- Inactive
- Prompt Message
- UDF Check
- Automatic – Always
Enabled States
To use the Retail Delivery Fee features you must check en enable the desired supported US states using the checkboxes.
Mode Inactive
This is the default mode. Here the application won't perfom any actions, and you need to manually include the Retail Delivery Fee item when required.
For the automated modes, the application will check the document at the moment of calculation. If the document is of type Items, and the document ship-to state or any line ship-to state is one the applicable US states, then it will consider the Retail Delivery Fee applies, and will follow the mode logic, as explained below.
The automatization consists in adding the Retail Delivery Fee item to the document, and calculate the taxes.
Prompt Message
For automated modes, you need to select the Colorado Fee Item defined before in the Item Master Data.
In this mode, the application will prompt you with a confirmation message to include the Retail Delivery Fee, like this.
If confirmed, then the item will be added and the tax calculated.
This mode will only work for manual calculations. It doesn’t apply to Document Generation Wizard process or Event Service process, as there is no prompt during the bulk processing.
UDF Check
This mode works by evaluating a configurable UDF at the document header level, and add the Retail Delivery Fee Item if the UDF value is Y.
To use this mode, you need to complete the Retail Delivery Fee Fee UDF name at the settings, in this sample called U_TEST.
At the calculation moment, if the UDF value is Y, then the Colorado Fee Item will be automatically included in the document and in the tax calculation. The UDF value can only by Y, using Yes or other values will not be considered, but you can set any description to the UDF field.
Automatic
On this mode, the Retail Deliveryu Fee Item will always be included in the document if the previous requirements are met: having a enabled US state Ship-To address in the Item-Type document.
No prompts or evaluation will be made, and the fee item will be added to the document and included in the tax calculation.
This mode works for manual calculations, event service calculations and document generation wizard processes.
WebUI
The same features will be also released for the webUI, even for tax calculation jobs and for document generation.
Like all other configuration settings, the WebUI is totally independent from the Avatax add-on configuration.
The Prompt Message method is not available as no prompt will be shown during bulk processes.
